This statement of Fair Tax compliance was compiled in partnership with the Fair Tax Foundation (“FTF”) and certifies that Ethical and Environmental Screening Services Limited (“Ethical Screening”) meets the standards and requirements of the FTF’s UK Small Business Standard for the Fair Tax Mark certification.
Our Tax Policy
Ethical Screening is committed to paying all the taxes that we owe in accordance with the spirit of all tax laws that apply to our operations. We believe that paying our taxes in this way is the clearest indication we can give of being responsible participants in society. We will fulfil our commitment to paying the appropriate taxes that we owe by seeking to pay the right amount of tax, in the right place, and at the right time. We aim to do this by ensuring that we report our tax affairs in ways that reflect the economic reality of the transactions that we undertake during the course of our trade.
We will not seek to use those options made available in tax law, or the allowances and reliefs that it provides, in ways that are contrary to the spirit of the law. Nor will we undertake specific transactions with the sole or main aim of securing tax advantages that would otherwise not be available to us based on the reality of the trade that we undertake. Ethical Screening will never undertake transactions that would require notification to HM Revenue & Customs under the Disclosure of Tax Avoidance Schemes Regulations or participate in any arrangement to which it might be reasonably anticipated that the UK’s General Anti-Abuse Rule might apply.
We believe tax havens undermine the UK’s tax system. As a result, whilst we may trade with customers and suppliers genuinely located in places considered to be tax havens, we will not make use of those places to secure a tax advantage, and nor will we take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them. Our accounts will be prepared in compliance with this policy and will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.
Our Trading Address
The registered office address of Ethical Screening is: Formal House, 60 St. George’s Place, Cheltenham, Gloucestershire, GL50 3PN, which is also the trading address.
Our Tax Disclosures
Our average net profit before tax over the last three years ended 30 September 2022 to 2024 was £136,303. The average current tax charge over the last three years was £30,553 (22.4%). The average expected current tax charge over the same period was £29,987 (22.0%). The reason that the average current tax charge for Ethical Screening is slightly more than what would be expected, is explained below in the following current tax reconciliation with accompanying narratives:
- Average net profit before tax: £136,303
- Average expected corporation tax (22%): £29,987
- Expenses not deductible for tax purposes: £7931
- Depreciation in excess of capital allowances: £7192
- Marginal rate relief: £(946)3
- Average current tax charge (22.4%): £30,553
1 Expenses not deductible for tax purposes – some business expenses, although entirely appropriate for inclusion in the accounts, are not allowed as a deduction against taxable income when calculating the tax liability. Examples of such expenses could be: client entertaining.
2 Depreciation in excess of capital allowances – the accounting and tax treatments of fixed assets are different. For accounting, fixed assets are depreciated over their useful lives. For tax, there are specific rules on what can be claimed. These differences create a tax adjustment, which is only a timing difference. Eventually, the total depreciation in the accounts will match the total capital allowances in the tax returns. However, during the period under review, the tax treatment of our fixed assets was less favourable than our accounting treatment.
3 Marginal rate relief – From 1 April 2023, the main tax rate for companies with taxable profits over £250,000 increased from 19% to 25%. The small profits tax rate for companies with taxable profits below £50,000 stayed at 19%. For companies with taxable profits between these limits, the main tax rate is applied, but marginal relief is provided to gradually increase the Corporation Tax rate between the small profits rate and the main rate. For the years ended 30 September 2023 and 2024, our total chargeable profits fell within this range.
As at 30 September 2024, Ethical Screening had no deferred tax assets or liabilities on its Statement of Financial Position, and had no movements in deferred tax expensed or credited to the income statement.
Transactions with Directors
For the year ended 30 September 2024, directors’ remuneration (consisting of salary, pension contribution and employment benefits) amounted to £54,443.